Question

In: Economics

1- Even though advertising is expensive, can it be considered an investment? 2- Should advertising to...

1- Even though advertising is expensive, can it be considered an investment?

2- Should advertising to children be even more restricted than it is already? Explain your answer

Solutions

Expert Solution

1. Even though advertising is expensiv but it should always be considered as an investment. Because from a business or a company point of view, advertisement has the long term impact on the business development. This strengthens the brand of the product and it also creates brand loyalty among consumers, this results in increase in sales for the product for an extended period of time. Each comapny has the different way to advertise , not all companies advertise in the same manner. Goal of an advertising company is to generate a buying response. The potential consumer should become interested in the product and understand the benefit of the good or service . Advertising has the potential to be extremely beneficial but on the another side it also the wrong impact , if the advertisemnet is poorly conceive or executed which cause irreparable harm.Therefore, advertising is an investment and not an expense because the time and money that spent on the advertising always adds value to the company.Through advertising company can increase their sales volume and generate more profits and tjerefore, growth happens.

2. Yes, advertising to children should be even more restricted to children than it is already because great deal of advertising on T.V is aimed at children that not only promotes toys but also foods, drinks, music , films etc. Advertisement specifically to children is unethical because they have little or no money to the good but to persuade their parents to buy the product.This harms child-parent relations. Advertisements aimed at children brings negative social consequence.Like much of its food, drinks are unhealthy . But by seeing ads they consume these unhealthy products. Exploitative advertisements make brainwashes children into becoming eager consumers. Therefore, restricting advertisements litl will not make much differences to revenues of commercial and they can be regulated to ensure that ensure good standard to children.


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